,Exam Paper for Retail Management in BBA (With Answers)
PAPER # 1
**Duration:** 2 hours
**Instructions:**
- Answer all multiple-choice questions (MCQs) and short-answer questions.
- Use a pen to write your answers.
- Write your answers clearly and legibly.
- Be concise and to the point in your responses.
**Part A: Multiple-Choice Questions (40 marks)**
Choose the correct option for each of the following questions:
1. Which of the following is NOT a component of the retail marketing mix?
a) Product
b) Promotion
c) Price
d) Public Relations
**Answer: d) Public Relations**
2. What does CRM stand for in the context of retail management?
a) Customer Relationship Management
b) Customer Review Metrics
c) Cash Register Management
d) Consumer Returns Monitoring
**Answer: a) Customer Relationship Management**
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,3. Which retail format typically offers products at the lowest prices and minimal service?
a) Department store
b) Specialty store
c) Discount store
d) Boutique
**Answer: c) Discount store**
4. Inventory turnover is calculated as:
a) Cost of goods sold / Average inventory value
b) Average inventory value / Cost of goods sold
c) Total sales / Number of products
d) Average revenue per customer / Total inventory value
**Answer: a) Cost of goods sold / Average inventory value**
5. Which of the following is an example of non-store retailing?
a) Supermarket
b) Mall
c) E-commerce
d) Department store
**Answer: c) E-commerce**
**Part B: Short-Answer Questions (60 marks)**
6. Explain the concept of visual merchandising in retail management. (10 marks)
**Answer:** Visual merchandising is the practice of designing and arranging a store's
physical layout, displays, and signage to create an engaging and visually appealing
shopping environment. It aims to capture the attention of customers, influence their
buying decisions, and enhance the overall shopping experience. This involves the
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, strategic placement of products, lighting, colors, signage, and decorations to create a
cohesive and attractive store atmosphere.
7. Describe the key differences between omni-channel and multi-channel retailing. (15
marks)
**Answer:** Omni-channel retailing and multi-channel retailing are both strategies to
reach customers through various sales channels, but they differ in their approach:
- **Multi-channel Retailing:** In multi-channel retailing, a retailer operates multiple
separate sales channels such as physical stores, an e-commerce website, and a mobile
app. These channels may not be fully integrated, and customers may experience
different product offerings and service levels across channels.
- **Omni-channel Retailing:** Omni-channel retailing, on the other hand, offers a
seamless and integrated shopping experience across all channels. Customers can
research, purchase, and return products through any channel, and their preferences
and data are synchronized. This approach focuses on providing a consistent and
personalized shopping experience, regardless of the channel used.
8. Discuss the importance of customer loyalty programs in retail management. (10
marks)
**Answer:** Customer loyalty programs play a significant role in retail management for
several reasons:
- **Customer Retention:** Loyalty programs help retain existing customers by
providing incentives for repeat purchases. This reduces customer churn and increases
the lifetime value of customers.
- **Data Collection:** These programs allow retailers to collect valuable customer
data, including shopping habits and preferences. This data can be used for targeted
marketing and personalization.
- **Brand Loyalty:** Loyalty programs can foster emotional connections between
customers and the brand, leading to increased brand loyalty. Customers are more likely
to choose the retailer over competitors.
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